Question 1

In the Faulty Budget case, Jackson Daniels should:

Accepted Answer

A)  Wait to see if his budget numbers are met and, if not, inform top management of the error at that time
B)  Cover up the error in the budget forecast
C)  Let his friend, Jonathan Walker, explain the mistake to top management
D)  Admit his mistake to top management at the earliest possible timeE) A) and C)
F) A) and B)

Question 2

The 2008 inspections of CPA firms that audit public companies indicated that:

Accepted Answer

A)  CPAs reason at stages 3 and 4 in Kohlberg's model
B)  A lack of professional skepticism is a serious problem for auditors
C)  The selection of audit procedures is a serious problem for auditors
D)  A lack of professional skepticism and the selection of audit procedures are serious problems for auditorsE) A) and B)
F) A) and C)

Question 3

Describe the elements of professional judgment that support ethical decision making.

Accepted Answer

Professional judgment that supports ethi...

Question 4

Rest's "Four Component Model of Morality" can best be described as:

Accepted Answer

A)  A description of the values that influence ethical decision making
B)  A model of the relationship between ethical action and one's level of moral development
C)  A model of moral judgment based on one's possession of certain virtues of behavior
D)  All of the aboveE) A) and C)
F) A) and B)

Question 5

The case titled "Expectations for Professional Judgment by Auditors to Detect Fraud" suggests that:

Accepted Answer

A)  Fraud is a common element of audits.
B)  Auditors always detect fraud if they follow professional standards.
C)  Even an audit in accordance with professional standards can fail to detect a material fraud in the financial statements, particularly where management has gone to great lengths to cover up the fraud.
D)  Auditors should not be expected to uncover fraud since management always has the upper hand with respect to financial statement matters.E) A) and B)
F) All of the above

Question 6

Each of the following is an element of Rest's model of morality except for:

Accepted Answer

A)  Moral sensitivity
B)  One's stage of ethical development
C)  Moral motivation
D)  One's courage in making decisionsE) C) and D)
F) All of the above

Question 7

Kevin Greenberg's actions in the "Supreme Designs" case can be said to have been:

Accepted Answer

A)  Selfish, in that he only thought of his own interests
B)  Disloyal to the company
C)  Unethical because he wrote checks to himself for unauthorized checks
D)  Undertaken with the intent to help out his supervisorE) A) and D)
F) C) and D)

Question 8

What should be the first step in decision making when faced with an ethical dilemma?

Accepted Answer

A)  Choose an ethical theory to follow.
B)  Discuss with others your options.
C)  Get the facts surrounding the problem.
D)  Determine consequences.E) C) and D)
F) B) and D)

Question 9

Describe the components of the decision making process presented in the chapter.

Accepted Answer

The decision-making process presented in...

Question 10

How does the "ethical domain" in accounting and auditing influence professional judgment?

Accepted Answer

The "ethical domain" in accounting and a...

Question 11

In Kohlberg's six stages of moral development, the stage that follows obedience in the pre-conventional stage is:

Accepted Answer

A)  Social order
B)  Fairness to others
C)  Law and order
D)  Self-chosen principlesE) A) and B)
F) B) and C)

Question 12

Use the decision making process to evaluate the actions of Cynthia Cooper as described in case 1.

Accepted Answer

The decision-making process can be used ...

Question 13

The ethical dilemma for Brenda in "The Tax Return" case can best be described as a:

Accepted Answer

A)  Conflict between loyalty to one's supervisor and doing the right thing
B)  Conflict between reporting an item of taxable income and ignoring it
C)  Lack of independence due to ties to the client entity
D)  All of the aboveE) B) and D)
F) None of the above

Question 14

Rest's components of a moral model include all but

Accepted Answer

A)  Moral sensitivity
B)  Moral development
C)  Moral judgment
D)  Moral characterE) None of the above
F) B) and C)

Question 15

Kohlberg's model suggests that a person

Accepted Answer

A)  is morally developed early in life and will not change
B)  continues to change decision priorities with education and experiences
C)  may change up or down one stage upon becoming an adult
D)  may only go backwards through the stages upon becoming an adultE) B) and D)
F) B) and C)

Question 16

At which stage of moral development are most accountants and auditors with respect to their decision making? What factors are responsible for their being at that stage?

Accepted Answer

Most accountants and auditors are likely...

Question 17

Moral sensitivity can be summarized as

Accepted Answer

A)  Being able to think of others first
B)  Being able to identify the best course of action
C)  Being able to identify an ethical situation
D)  Being able to react quicklyE) B) and C)
F) C) and D)

Question 18

Each of the following is an element of the operational issues to be considered in the decision making model except for the:

Accepted Answer

A)  Culture of the organization
B)  Method of moral reasoning
C)  Internal controls
D)  Corporate governance systemE) A) and B)
F) A) and C)

Question 19

Wanda is faced with an ethical dilemma.She knows her supervisor, the CFO, wants to accelerate the recoding of revenue to an earlier period to "make the numbers," but Wanda is convinced this would violate GAAP.If Wanda reasons at stage 4 of Kohlberg's model she is most likely to:

Accepted Answer

A)  Make a decision based on what is in her own best interests
B)  Consider the interests of the stakeholders but decide based on what is in her best interests
C)  Refuse to record the transaction as desired by the CFO
D)  Inform the board of directors of the difference of opinion with the CFOE) B) and C)
F) A) and D)

Question 20

In the case of Eating Time, what is the ethical dilemma facing Kevin Lowe?

Accepted Answer

A)  Quality of work versus integrity.
B)  Integrity versus loyalty to the firm.
C)  Quality of work versus loyalty to the firm.
D)  Trust of a co-worker versus quality of work.E) A) and D)
F) All of the above

Exam 2: Accountants Ethical Decision Process and Professional Judgment

Rest's components of a moral model include all but

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The ethical dilemma for Brenda in "The Tax Return" case can best be described as a:

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Kohlberg's model suggests that a person

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The case titled "Expectations for Professional Judgment by Auditors to Detect Fraud" suggests that:

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Rest's "Four Component Model of Morality" can best be described as:

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Wanda is faced with an ethical dilemma.She knows her supervisor, the CFO, wants to accelerate the recoding of revenue to an earlier period to "make the numbers," but Wanda is convinced this would violate GAAP.If Wanda reasons at stage 4 of Kohlberg's model she is most likely to:

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In the Faulty Budget case, Jackson Daniels should:

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Describe the components of the decision making process presented in the chapter.

Correct AnswerAnswered by ExamLex AIThe decision-making process presented in...View AnswerShow Answer

In Kohlberg's six stages of moral development, the stage that follows obedience in the pre-conventional stage is:

Correct AnswerverifiedShow Answer

Moral sensitivity can be summarized as

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Kevin Greenberg's actions in the "Supreme Designs" case can be said to have been:

Correct AnswerverifiedShow Answer

The 2008 inspections of CPA firms that audit public companies indicated that:

Correct AnswerverifiedShow Answer

What should be the first step in decision making when faced with an ethical dilemma?

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Use the decision making process to evaluate the actions of Cynthia Cooper as described in case 1.

Correct AnswerAnswered by ExamLex AIThe decision-making process can be used ...View AnswerShow Answer

In the case of Eating Time, what is the ethical dilemma facing Kevin Lowe?

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Each of the following is an element of Rest's model of morality except for:

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Each of the following is an element of the operational issues to be considered in the decision making model except for the:

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At which stage of moral development are most accountants and auditors with respect to their decision making? What factors are responsible for their being at that stage?

Correct AnswerAnswered by ExamLex AIMost accountants and auditors are likely...View AnswerShow Answer

How does the "ethical domain" in accounting and auditing influence professional judgment?

Correct AnswerAnswered by ExamLex AIThe "ethical domain" in accounting and a...View AnswerShow Answer

Describe the elements of professional judgment that support ethical decision making.

Correct AnswerAnswered by ExamLex AIProfessional judgment that supports ethi...View AnswerShow Answer

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The decision-making process presented in...
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The decision-making process can be used ...
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Most accountants and auditors are likely...
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The "ethical domain" in accounting and a...
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Correct Answer
Answered by ExamLex AI
Professional judgment that supports ethi...
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